How To Set Up Payments Settings In Shopify | Pt2

December 11, 2022

One of the most important questions to ask when setting up your ecommerce store is: How do customer pay? It's kind of hard to make money online if people can't pay you! Luckily if you're using Shopify, you have access to Shopify payments which makes allow customers to buy online a breeze!

Setting up Shopify payments

To activate Shopify payments head to settings >> payments. You'll be greeted with a screen which looks like the screenshot above. Hit the big green button and a popup will appear asking you to confirm your personal/business details such as name, address and phone number (required).

Once that's done you need to complete the set up by answering additional information. You don't have to fill this in right away. When you want to come back to finish it just head back into shopify settings >> payments and there should be a button with "Complete account setup" to take you right back.

Above is a screenshot of the first part of the questions you will be asked. The first is your business structure - Choose according to your situation. The options you can have for business type are:

- Individual/sole trader

- Private limited company

- Nonprofit

- Partnership/LLP

Companies House Registration Number (CRN) is a number that HMRC sends in a letter when you register your business at Companies House. This is optional.

A VAT (Value Added Tax) number is for UK businesses who have an annual turnover exceeding £85,000. Just choose no if you don't meet those requirements currently.

Next up, after some more personal details is Product details. The options to choose from aren't always clear or applicable to what you're selling but choose the one which fits the most. The description doesn't have to be long - just a short sentence or two.

The customer billing statement is a series of letters which will appear on customers bank statements. Just put your business name here. If your business name is too long them abbreviate it as best you can.

Then enter the Bank details where you want to get paid into (via Shopify payouts). All done!

Payment capture method

In 95% of cases you're perfectly fine to continue with 'automatically'. Without going into too much detail manual basically means you'll have to review every single payment method used for each sale.

Read up more on payment capture method here

Manage Shopify Payments

Once you've set up Shopify payments you can always come back later to change details. Go to settings >> payments. Then press the a blue 'manage' button next to the Shopify payments section. Here you can manage your payout schedule. You can choose to have payouts get deposited into your chosen account everyday, on 1 certain day of the week or 1 certain day of the month.

You can also change settings regarding Fraud prevention. If you want to ensure the risk is lower then check the box with "Decline charges that fail AVS postal code verification" and "Decline charges that fail CVV verification". These just create a higher barrier to entry for payment by running checks that the credit card details match the address given and the person knows the 3 digit CVV code at the back of every card.

Here you can also Deactivate Shopify Payments of switch to a third party provider.

Test mode

If you're not convinced that Shopify payments will work then you can put it to the test by enabling test mode. This enables Shopify's Bogus Gateway which lets you simulate a transaction but not have to spend any real money. Doing this should allow you greater insight onto the customer journey all the way though to the point of buying.

Read up more on test mode here. Also don't forget to disable test mode once you are done.

Standard Rates

For sales made in your country, Shopify take 2% + £0.25 for all online sales and this moves up to 3% + £0.25 if you're selling internationally. If you'd like to get more favourable rates then you can upgrade to a higher plan on Shopify.

Accepted payment methods

Just by setting up Shopify payments alone you will have allow customers to pay with Visa, Mastercard, Maestro, Amex, Discover, Diners Club, Shop Pay, Apple pay and Google pay. This will probably allow upwards of 80% of people to shop with you.

You can check and uncheck each payment type as you please at anytime.

Additional payment methods

If all the payment card listed above weren't enough for you, you can have additional payment methods with Shopify integrations. Two of the most common additional payment methods are Paypal and Amazon Pay. With both of thse you can just hit the activate button, then it will redirect you to login with Paypal/Amazonpay and follow instructions from there.

This blog would get extremely long if I listed out every additional payment method you can have but to name a few you probably recognise:

- Klarna

- Stripe

- SagePay/Opayo

- WorldPay

- Square

To get access to the these, press add payment methods and simply search for them!

Manual Payment Methods

This is an overlooked setting inside of Shopify. For people who don't want to accept card payments or don't think you're of the size yet, you can make use of Manual payment methods. This creates an extra payments option inside of Shopify checkout for your customers to choose from. Then once they buy they will get a set of instructions which you will input right here in settings (Screenshot below).

The options you can have here are:

- Bank Deposit

- Money Order

- Cash on Delivery (COD)

- Create custom payment method

I can see why this becomes overlooked because of how easy Shopify Payments are. The only reasons to use these options would be if you had a super specific reason or you are selling locally.

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